Letters to the editor

Tuesday

Jan 24, 2017 at 12:06 AM

SB17 likely won’t be good for Missouri

An open letter to our Missouri state senators:

Recently, Sen. Will Kraus introduced Missouri Senate Bill 17. This bill calls for the elimination of state corporate taxes. Nationally, these types of bills are introduced in order to attract corporations to the state. However, Missouri presently has the fifth lowest corporate tax rate. Overall, this bill would have the immediate impact of reducing state revenues by approximately $500 million each year.

Corporations locate for two specific reasons. The first is the area has the skilled labor that is necessary for the corporation. In order for the state to have the skilled labor now demanded for the type of work available in our nation, the state needs to ensure effective education systems from kindergarten through post-secondary is developing the skills required by these corporations. The second is the necessary infrastructure for the corporations. This requires the state to ensure not only roads, railroads, airports and bridges are maintained, but also the electrical grid, water supply and waste disposal are effectively developed and maintained.

Gov. Greitens is already facing a revenue shortage, and SB17 will drastically increase this shortage. This places the governor and the state legislature in a position of having to cut spending as our state Constitution requires the passage of a balanced budget. Will the cuts come from education and infrastructure, thus negating the removal of the corporate tax rate? More than 25 percent of our state bridges are labeled as structurally deficient, which begs the question about the rest of the state’s infrastructure. And Missouri is already spending more than $1,000 less per pupil on education than the national average. This leads me to wonder what exactly the goal is for the state with SB17.